{"id":7859,"date":"2024-08-28T12:54:09","date_gmt":"2024-08-28T07:24:09","guid":{"rendered":"https:\/\/gwcindia.in\/blog\/?p=7859"},"modified":"2024-08-31T10:02:40","modified_gmt":"2024-08-31T04:32:40","slug":"mutual-fund-market-in-last-7-months","status":"publish","type":"post","link":"https:\/\/www.gwcindia.in\/blog\/mutual-fund-market-in-last-7-months\/","title":{"rendered":"Mutual Funds:"},"content":{"rendered":"

Mutual Fund Market in Last 7 Months is Booming<\/h1>\r\n

63 new passive mutual funds launched in past 7 months, why are they getting popular among investors?<\/h4>\r\n

Mutual Funds: A total of 106 new fund offers (NFOs) were launched by numerous mutual fund houses in the first seven months comprising 63 in the passive category<\/em><\/h5>\r\n

In the past seven months of this calendar year, a total of 106 new fund offers (NFOs) were launched across mutual fund houses. These NFOs comprised 25 thematic and 31 index schemes, reveals the AMFI (Association of Mutual Funds in India) data.<\/strong><\/p>\r\n

Out of these new schemes, 63 passive schemes were launched in the first seven months vis-\u00e0-vis 51 in the entire last year, reveals Ace Equity MF data.<\/strong><\/p>\r\n

Passive\u00a0mutual funds\u00a0are the schemes which replicate the performance of an index, and are managed passively by fund managers. They are typically more popular among investors because they are more cost-effective and easy to understand. Importantly, most active mutual funds\u00a0fail to beat the benchmark, anyway. Therefore, investors tend to lap up passive schemes.<\/strong><\/p>\r\n

An Advisor reacts, \u201cMost of the new launches are thematic mutual funds in such sectors as manufacturing, business cycle fund and\u00a0defence. There are quite a few reasons for this including the rallying of markets. Although the market is still overpriced, the sectoral rotation will happen. So, those investors who are looking for a buying opportunity can invest in sectoral funds. And if you want to invest in a benchmark\u00a0index, you should invest in a staggered manner and not in one shot.\u201d<\/strong><\/p>\r\n

Additionally, passive funds do not necessarily replicate benchmark indexes. There are a number of passive funds which track a particular sector or theme such as defence, consumer durables or infrastructure, among others.<\/strong><\/p>\r\n

\u00a0\u201cAs more and more investors understand that generating alpha for a longer period from active mutual funds is not easy, they are more interested in passive mutual funds which are very cost-effective and a no-brainer for the investors. But somehow such investments are boring so to attract more and more investors, mutual fund companies apply new marketing strategies by offering sectoral\/thematic passive funds. They are also coming up with Smart Beta funds to generate some alpha over plain vanilla passive funds,\u201d says Preeti Zende, a SEBI-registered investment advisor and founder of Apna Dhan Financial Services.<\/strong><\/p>\r\n

In the month of July alone, 15 new schemes were launched comprising six index funds, six ETFs, two thematic and one multi cap. In the preceding month of June, 17 schemes were launched comprising 9 thematic funds, three ETFs and two index funds. In May, nine schemes were launched comprising 4 index funds, three ETFs and one thematic fund.<\/strong><\/p>\r\n

When seen Quarter-wise, a total of 35 schemes were launched in the April-June quarter alone which comprised 11 thematic funds and 12 index funds. In March quarter, meanwhile, 56 mutual funds were launched comprising 13\u00a0index funds\u00a0and 11\u00a0thematic funds.<\/strong><\/p>\r\n

Old wine in the new bottle?<\/strong><\/h4>\r\n

Some wealth advisors believe that the fund houses launch new schemes to draw more investors and inject fresh money into the market since inflows into existing schemes continue to decline over time<\/strong><\/p>\r\n

\u201cFund houses have to invest in new strategies to attract new clients in the market. When the fund is old its inflow may reduce but any NFO with current sectorial flavour like defence, infrastructure, energy or even with name opportunities fund can attract new money in the market,\u201d adds Ms Zende.<\/strong><\/p>\r\n

Meanwhile, she does not advise investors to opt for an NFO since one does not have any historical performance based on which one can assess the fund. Additionally, the risk gets even higher when you opt for a thematic fund.<\/strong><\/p>\r\n

\u201cI never advocate going with any NFO as investing in the existing MF with a good track record of its performance is always prudent, which we can study and compare,\u201d<\/strong><\/p>\r\n

Goodwill is a leading MF distributor and hence it is to your advantage to make use of their professional services and start investing in attractive and gainful MF schemes.<\/strong><\/h1>\r\n
Click to open an Account<\/strong>\u00a0:\u00a0https:\/\/ekyc.gwcindia.in\/client\/<\/a><\/div>\r\n
For all your investment needs feel free to reach us.<\/strong>\r\n
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\r\n\r\nGive us Missed Call us on 90037 90027 . For Support : 044-40329999<\/strong><\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>","protected":false},"excerpt":{"rendered":"

Mutual Fund Market in Last 7 Months is Booming 63 new passive mutual funds launched in past 7 months, why are they getting popular among investors? Mutual Funds: A total of 106 new fund offers (NFOs) were launched by numerous mutual fund houses in the first seven months comprising 63 in the passive category In […]<\/p>\n","protected":false},"author":6,"featured_media":6990,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"image","meta":{"_acf_changed":false,"footnotes":""},"categories":[132],"tags":[],"class_list":["post-7859","post","type-post","status-publish","format-image","has-post-thumbnail","hentry","category-market-overview","post_format-post-format-image"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/posts\/7859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/comments?post=7859"}],"version-history":[{"count":3,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/posts\/7859\/revisions"}],"predecessor-version":[{"id":8048,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/posts\/7859\/revisions\/8048"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/media\/6990"}],"wp:attachment":[{"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/media?parent=7859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/categories?post=7859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gwcindia.in\/blog\/wp-json\/wp\/v2\/tags?post=7859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}